Is Delta Air Lines, Inc. overvalued or undervalued?

As of 17 October 2025, the valuation grade for Delta Air Lines, Inc. has moved from expensive to fair. The company appears fairly valued based on its current metrics, with a P/E ratio of 9, an EV to EBITDA of 5.50, and a Price to Book Value of 2.19. In comparison, United Airlines Holdings, Inc. has a P/E of 8.92 and an EV to EBITDA of 5.60, while Southwest Airlines Co. is considered expensive with a P/E of 43.59.
Despite a recent downturn in year-to-date returns of -1.42% compared to the S&P 500's 13.30%, Delta has shown strong performance over the longer term, with a 3-year return of 91.58% versus the S&P 500's 81.19%. This suggests that while the stock may currently be underperforming in the short term, it has the potential for recovery and growth in the longer horizon.